Tories pledge support for small firms

Ken Clarke, the shadow business secretary, has pledged to put help for
Britain's millions of small and medium-sized enterprises at the heart of the
Tories' business manifesto for the general election.

By Louise Armitstead and Andrew Cave

7:29PM GMT 06 Mar 2010

Speaking to The Sunday Telegraph, Mr Clarke said that Labour had failed to encourage private investment into new technologies and that he wanted to simplify regulation and employment law to create more business development opportunities.

"We have to create an economic climate in which British business can flourish," he said. "One of my high priorities is to create the right environment for SME businesses to thrive because they are the bedrock of our economy."

Lending to business was also an important area. "We've got to do something about the credit markets," he said. "We're working on various measures. For example, along the lines of the loan guarantee we announced in the middle of the recession. At the time even the giant companies couldn't get credit but now the recession has moved on and we need a more sophisticated approach to the supply of credit." A task force has been set up under Sir James Dyson, the entrepreneur, to look at how to encourage the sector.

One area being considered is looking at resurrecting the Enterprise Allowance Scheme, the Thatcher-era initiative that funded entrepreneurs such as artist Tracey Emin, Creation Records founder Alan McGee and SuperGroup chief executive Julian Dunkerton.

The scheme guaranteed weekly payments to unemployed people who wanted to get off the dole and set themselves up in business.

Related Articles

Mr Dunkerton, 44, who started Cult Clothing on a market stall in Cheltenham in 1985, funded by a £2,000 loan and £40-a week Enterprise Allowance Scheme payment, is set to crystallise a near £200m fortune this month when SuperGroup, the holding company for Cult and the Superdry clothing brand, floats on the London Stock Exchange.

In an interview with The Sunday Telegraph, he says: "I believe that we have a problem with a rump of 18-25-year-olds in this country and I believe that anyone in that age range should be given a chance to start their own businesses. If one in 10 worked, it would be considered a success."